Apple supplier reduces the production of displays for iPhone

The company Japan Display, which is Apple’s supplier, has decided to cut production of LCD panels for smartphones iPhone XR.

The decision is due to poor sales of the iPhone XR in recent months.

It is expected that the reduction will reduce production capacity by about 30% compared to the November peak levels, and is a potential setback for the company, known as JDI, which considered a contract for the supply of XR as the key to overcoming the four-year streaks of losses.

Japanese media noted that the plants gradually reduced the production of iPhone panels XR and stop Assembly for 10 days during the Christmas holidays.

Last month the company lowered its sales forecast for the fiscal year that ends in March next year, to 5-15% from the previous range of 10-20%. It also reduced its estimate of operating profit.

Apple is positioning the XR, which went on sale on October 26 as a model for the mass market in its iPhone series X. the Phone has a lower price than other models. Japan Display supplying most panels for the device.